TORONTO, ONTARIO–(Marketwired – April 27, 2015) – Griffin Skye Corporation (“Griffin Skye” or the “Corporation“), formerly NorRock Realty Finance Corporation (TSX VENTURE:GRS.H) announces the release of its financial statements and management discussion and analysis (“MD&A”) for the year period ended December 31, 2014. All capitalized terms used and not defined in this press release have the meaning given to then in the MD&A.
The Corporation reports the following operational and financial highlights.
2014 Review and Outlook
On December 15, 2014, the Corporation completed a reorganization pursuant to which the Corporation transitioned from the Canadian securities regulatory regime for investment funds to the public company regime (“the Transition”). The transition was approved by shareholders on December 10, 2014 and implemented by filing Articles of Amendment, effective on December 15, 2014.
As part of the Transition, the Corporation implemented a number of changes including the following:
- The terms of the Class A Shares were amended to provide Class A Shareholders with rights equivalent to those typically found in common shares of public companies under the Public Company Regime. This included the addition of standard voting rights and elimination of monthly and annual redemption rights;
- The authorized capital of the Corporation was changed to remove the previously authorized class J Shares and Preferred Shares;
- Class J shares was redeemed for $1 and cancelled;
- The investment restrictions previously contained in the Corporation’s articles were deleted.
As a result of the requirement to comply with National Instrument 51-102 continuous disclosure requirements the Corporation has adopted International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) and prepared the financial statements and related disclosures in accordance with IFRS, along with a Management’s Discussion and Analysis. One of the key distinctions between both regimes however, is that financial statements will be provided on a quarterly basis rather than semi-annually.
The financial statements have been prepared on a going concern basis. The going concern basis of presentation assumes that the Corporation will continue operations for the foreseeable future and will be able to realize its assets and discharge its liabilities in the normal course of operation.
The Corporation has incurred a net loss of $82,697 for the year ended December 31, 2014 (2013 – $420,958), has a working capital deficiency (defined as current assets less current liabilities) of $495,645 as at December 31, 2014 (2013 – $412,950). This casts significant doubt on the Corporation’s ability to continue as a going concern unless it can generate net profit, raise adequate financing and continuing financial support from related parties. These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts classified, as liabilities that might be necessary should the Corporation be unable to continue in existence. These adjustments could be material. The Company has had no operation since it completed the transaction with Partners REIT in early 2012. In 2014 The Corporation received $375,000 in cash as a break fee for the terminated HighView transaction. The Corporation has no other ongoing business from which to derive income. The Corporation had expenses (significant legal ($191,751), administrative ($120,597), Director ($53,399) and other ongoing business fees) resulting in a net loss of $82,697).
Griffin Skye’s board of directors and management continues to explore options, which they believe will be in the best interests of Griffin Skye and its shareholders. Any proposed transaction will be subject to receipt of all necessary regulatory approvals. The business of Griffin Skye may remain in the commercial real estate lending industry or be in a different industry.
Cash on Hand
At December 31, 2014, the Corporation had approximately $11,340 cash on hand.
Distributions to Shareholder
There were no Distributions in 2014.
For detailed information on financial results please refer to the Corporation’s financial statements and management discussion and analysis for the period ending December 31, 2014 available under the Corporation’s profile on SEDAR (www.sedar.com).
The Corporation is a corporation under the Income Tax Act (Canada), incorporated under the laws of Ontario.
Certain statements included in this news release constitute forward-looking statements including statements identified by the words “plan”, “will” and “intend”, and similar expressions or the negative thereof. The forward-looking statements are not historical facts but reflect the Corporation’s current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Readers are cautioned not to place undue reliance on forward-looking information. The Corporation undertakes no obligation to update publicly or otherwise revise any forward-looking statement or information except as required by law. For more information on these risks and uncertainties, readers should refer to the risk factors described in the management’s discussion and analysis of the Corporation for the year ended December 31, 2014
Neither TSX Venture Exchange nor its Regulator Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Chief Executive Officer